Economy & Business MCQs: RBI Policy, Export Scheme 2026

21.

What is the primary objective of the Production Linked Incentive (PLI) scheme?

A To reduce import duties on raw materials.

B To provide subsidies for agricultural exports.

C To boost domestic manufacturing and exports by offering incentives on incremental sales.

D To encourage foreign direct investment in the service sector.

22.

In India, the financial year (FY) typically runs from which month to which month?

A January to December

B April to March

C July to June

D October to September

23.

Which of the following is a key component of 'domestic demand' that drives GDP growth?

A Net Exports

B Government Consumption Expenditure

C Foreign Direct Investment

D External Borrowings

24.

Which of the following best defines Gross Domestic Product (GDP)?

A Total value of goods and services produced by a country's citizens anywhere in the world.

B Total value of goods and services produced within a country's geographical boundaries in a specific period.

C Total value of exports minus imports.

D Total government expenditure in a fiscal year.

25.

What is the primary inflation target mandated for the Monetary Policy Committee (MPC) by the Government of India?

A 2% with a band of +/- 1%

B 4% with a band of +/- 2%

C 6% with a band of +/- 2%

D 5% with a band of +/- 1%

26.

What does maintaining the Repo Rate primarily signal about the RBI's stance on liquidity and inflation?

A Tightening monetary policy

B Easing monetary policy

C Neutral monetary policy

D Expansionary fiscal policy

27.

Who heads the Monetary Policy Committee (MPC) of the Reserve Bank of India?

A RBI Governor

B Finance Minister

C Prime Minister

D Chief Economic Advisor

28.

Indian IT firms are increasingly focusing on offering advanced services as part of their global expansion. Which of the following is a key area of focus?

A Traditional data entry and basic call center services.

B Legacy system maintenance and hardware repair.

C Digital transformation, cloud computing, AI, and cybersecurity.

D Manufacturing of IT hardware components.

29.

Which of the following regions is a major focus for Indian IT firms expanding their global operations?

A South America and Africa.

B North America and Europe.

C Australia and New Zealand.

D Central Asia and Russia.

30.

What is a primary driver for Indian IT firms to expand their global presence?

A To reduce their domestic workforce.

B To tap into new markets, acquire global talent, and diversify revenue streams.

C To avoid domestic taxation.

D To solely focus on government contracts abroad.